EU takes Pacific island nation of Palau off of tax-haven watch list

Luxembourg (dpa) - The European Union has taken the Pacific island nation of Palau off of its list of uncooperative tax jurisdictions, EU finance ministers said in a joint statement on Tuesday.Palau has made "commitments at a high political level" to alleviate tax-evasion concerns, but the nation will be closely monitored for full implementation, the statement said. Six jurisdictions remain on list - American Samoa, Guam, Namibia, Samoa, Trinidad and Tobago, and the US Virgin Islands.The EU introduced the blacklist in December 2017 amid broader efforts to clamp down on tax avoidance. The countries on the list face EU funding restrictions, but member states disagree on the need to impose further sanctions to encourage reform.There is also a "grey" list of jurisdictions that have committed to bringing their tax laws in line with EU standards. Liechtenstein and Peru have been taken off the grey list, having been found to be compliant "with all the tax good governance principles" of the EU, the statement said.